After Dizzying Rally, Real-Estate Investment Trusts May Be Overheating

After a dizzying rally, real-estate investment trusts may be overheating. As investors flock to these shares in search of high payouts, some fund managers are worried that a repeat of last year's sharp selloff could be in the making.

REIT stocks are one of the top-performing groups within the stock market this year. The MSCI U.S. REIT Index has gained 15% this year, far outpacing the S&P 500's 5.5% rise.